Making Crime Pay: Timing of External Whistleblowing

• In Event: Consoritum / Research Paper Sessions with Senior Researchers

Abstract

With the increasing prevalence of awards for reporting fraudulent activity it is important to learn what, if any, unintended consequences offering such awards may have. Aside from submitting unsubstantiated claims of fraud to the SEC, Section 922 of the Dodd-Frank Act could encourage would-be whistleblowers to delay reporting fraud in an effort to either become eligible for a monetary award or to increase their potential monetary award. Using an experimental approach, this study provides evidence of circumstances in which an employee chooses to delay reporting fraud.

Authors

• Andrea Scheetz, Case Western Reserve University

• Joseph Wall, Case Western Reserve University